Banking is a sector which never fails to raise one's curiosity. Hence questions poured in from every corner during the rediff.com chat on Thursday with Y B Desai, former chairman and managing director of Exim bank, Mumbai. Here is the transcript:
Y B Desai says, Hi everybody. A very good afternoon. Let's chat.
Husain asked, What is the benefit to the Bank by using their credit cards?
Y B Desai answers, It is an effective source of income for banks.
red asked, I am a asst Prof in engg college, i applied online for credit card , no one contacted me, Pls let me know a good way of applying for a new credit card
Y B Desai answers, Call your bank. If they are issuing credit cards or seek their guidance in getting one.
nafisa asked, the bank is giving me life time free membership credit card, is it worth?
Y B Desai answers, Yes, of course. You will that way save annual renewal fee.
nm asked, Would it make sense to put money in fixed deposits?..Any likelyhood that the rate of retuen would go up?
Y B Desai answers, Fixed deposit rates are expected to rise in near future.
binod asked, i ve already taken a loan for 3 yrs tenure and i have given 7 EMI and now i want to extend my loan amount and tenure also.can i do that ?
Y B Desai answers, Yes provided your bank agrees.
nm asked, why do we still continue to get unsolicited calls from the credit card companies...The Supreme Court verdict is of no use..
Y B Desai answers, Yes I agree. Even I am a victim. Now they name the calls as information calls and not marketing calls.
gaurav asked, What is the normal rate of interest your bank is offering on Car Loans/Personal Loans
Y B Desai answers, There is no fixed or uniform rate. It will depend on the amount, tenure, the bank's assessment of credit worthiness and bank's cost of funds. It can range from 9% to 12% per annum.
Imran asked, Can we take legal action agaist the recovery agents for using vulgar language against the family members for non payment of dues?
Y B Desai answers, Yes definitely.
Mar asked, I want to purchase land at my native place?? Can Bank offer me a loan to purchase land in village. I am a
NRI..working in Singapore
Y B Desai answers, Yes if it is for construction of premises on that land.
vinod asked, Mr,Desai ! Which is the most reasonable credit card in the market ?
Y B Desai answers, To me, all are good. But one has to experience the service to come to a conclusion.
Y B Desai answers, Please refer to my answer to a similar question. I suggest you may approach a bank or a a housing finance company who will tell you about your eligibility for the loan.
shaikh asked, i'm hvg six different bankscredit cards & now really i'm fed up with their late payment & interest cahrges although i make my payment before due date
Y B Desai answers, It should not happen. I am surprised. Please take up with them with documentary evidence. You are expected to pay a few days before due that so that your bank receieves on or before due date. You can complain to Reserve Bank.
KC asked, My credit card company offering me loan at 0.60% rate p.m. If I take the loan & put the same in Monthly Income Scheme, would that be beneficial?
Y B Desai answers, If it is the Monthly Income Scheme of Post Office you mean, there may not be too much of benefit as the return may be same post tax.
David asked, When one has fulfilled all the criteria for a credit card and submitted documents accordingly why do some banks just not bother to even reply whereas others do so promptly?
Y B Desai answers, I think you should clarify with the respective banks only. Each bank has its own norms of giving out credit cards. It is the bank's duty to do follow ups.
kalif asked, hi sir i like to know if i takes loan agains my credit wht rate of intrest they charge?
Y B Desai answers, Credit card companies do offer short term loans up to a limit. Their interest rates could vary --for example, 0.6% per month.
Amit asked, what the best tenure according to you to invest through Fixed deposits.
Y B Desai answers, Depositor has to choose tenure depending on his or her liquidity needs. But from current year, only deposits of five years and above will be eligible for tax exemption under Income Tax Act.
jagadish asked, Can a company take legal action against a person who has not paid his dues.
Y B Desai answers, We presume by company you mean a bank that gives out loans. Yes, banks can take legal action against defaulters.
amanjee asked, Can i go to consumers court for waiver of prepapyment penalty which is very stiff
Y B Desai answers, No you cannot. The prepayment penalty is part of terms and conditions agreed upon by you when you avail of the loan. You can only request the bank to waive or reduce such penalty.
prem asked, what is the flat rate or floating rate
Y B Desai answers, A flat rate is a rate of interest fixed upfront and remains valid throughout the tenure of the loan whereas a floating rate is a variable rate of interest which is adjusted by the bank periodically, says, every three months at their discretion.
securesac asked, Hi Mr. Desai. My home loan was approved 30 days back. I have given cheques and other necessary documents to bank but so far my loan has not been dispersed and bank is giving excuses like project has not been approved. I want to reoprt in consumer court. Is there any way for the same.
Y B Desai answers, I think the best place to register a complaint would be the Reserve Bank of India. Consumer Court may not be of help since you have not received any agreement/document from the bank as yet.
MRao asked, I have taken home loan 2 years back on floating rate in Corporation Bank, is it worth to change to fixed
Y B Desai answers, Yes particularly because interest rates on home loans are likely to go up further. But do check with the bank whether you have to pay any prepayment charges for shifting the loan.
Purva asked, Whena bank upgrades my card to Gold from Silver, do I need to send them my salary details to increase the credit
amanjee asked, Should i take a Fixed interest rate at 10.75 or Floating at 9.25 for a housing loan of 24 lakhs I intend closing the loan within 10 years
Y B Desai answers, It is difficult to say if 10.75% fixed interest rate is reasonable since this will depend on bank's assessment. But since the home loan interest rates will continue to rise, it is better to lock in at this interest rate.
tulip asked, I have a Fixed Housing loan from SBI, I have heard about Super Saver A/c which helps while we can able to keep the liquidity with funds, please give some details how can I get the benifits and keep the liquidity.
Y B Desai answers, Yes banks do offer such facility to their home loan customers. It is better to obtain details from SBI itself before going for such a thing. It will be difficult for me to answer on behalf of SBI.
ss asked, Mr Desai..can you please explain when does a credit card co actually charge you interest on outstanding amounts?
Y B Desai answers, The interest is payable if the amount due is not paid on due date. The interest rate varies from bank to bank but would normally be 2.5% per month.
Ravindra asked, My gross pay is 5laks per annum. And I joined in the company one month (I am a fresher). I want to take home loan. I have probation period of 6months. Can I take loan in this period?? How much max amount can I take as loan
Y B Desai answers, Yes you can apply for a loan but since you are still on probabtion, the bank will have to take a view. The bank may ask for some additional security or some comfort letter from your employer. The amount of loan will be decided by the bank depending on your ability to service the loan after meeting your other liabilities if any.
Amit Agarwal asked, Sir! I have a credit card of SBI, And I took a balance transfer of Rs.29000 for three months. First Of all I recieved the cheque after 22 days where as their counter started from the day I made a request. Then although I made the payment in due time but my last payment was delayed because of the Strike by SBI Staff. Now the have fine me for the interest for late payment and are nor revesing the same. What should I do ?
Y B Desai answers, First lodge a complaint with SBI. If they do not resolve the issue, you can complain to Reserve Bank of India. You can access the reserve Bank of India homepage online and get the details.
Ramana asked, Hi desai,I am going to take home loan.I was identify the property in Andhra pradesh ,i am staying in bangalore.will i get a loan from Bangalore?
Y B Desai answers, Yes provided the bank concern has no problems. For, the bank needs to monitor your property in Andhra Pradesh.
securesac asked, Please let me know how to register a complaint in RBI.
Y B Desai answers, You can access the Reserve Bank of India homepage online and get in touch with the regional office of the place you belong to. There is also an Ombudsman for banks in each state. The Ombudsman looks into complaints against banks. you can get more information from the REserve bank of India web site or from any RBI office.
manoj70 asked, Dear sir if i had done purchases on credit card and on due date i paid 80% of my toal outstanding then on what amount he will charge interes and from which date Pl. revert
Y B Desai answers, Remember, you will be charged interest on the full amount from the date you avail of credit.
vip asked, Iwish to put money in fixed deposits tguide me for that
Y B Desai answers, Approach the bank where you maintain your account.They will help you in the matter.
shaan asked, why is it not possible to get a loan if I get Cash Salary???
Y B Desai answers, If you are getting cash salary, banks cannot verify your income through your bank statements. Also, cash payments generally vary from month to month unless there is a regular salary slip from your employer. Besides, such income may also not be reflected fully in the Income tax returns. All considered, banks would not consider loans against such income.
ParulPokhriyal asked, Mr. Desai my Standard Chartered bank card was stolen in Jan this year, i realised of the theft when the damage was already done to the tune of Rs.68000.I lodged an FIR with the Police.The thieves were cought in Feb and were positively identified by the shop keepers where the transaction were done. I have disputed the charges with the bank on the grounds of signature mismatch and fraud. The bank has so far waived off around Rs.30000 but refusing to waive of approx Rs.40000 and holding me liable for it.What options do i have as i am already a victim and bank doesnot want to consider my good credit history.The incident was well covered in news papers (http://cities.expressindia.com/fullstory.php?newsid=169597)Kindly advise.
Y B Desai answers, A credit card holder is obliged to inform the bank and file FIR immediately on detection of theft or loss. If there is any delay on the part of credit card holder, then the bank may hold him liable for damages. It is diffciult for mme to comment on the stand taken by your bank. If you are aggrieved, you can take up that matter with the Reserve Bank of India.
vikas asked, Hi, I have taken loan on fixed rate, as saw news regarding RBI increasing the loan rate. Does this effect only the floating rate or does it affect fixed rate also?
Y B Desai answers, Please remember that the reserve Bank of India does not fix the interest rate at which commercial banks gi ve loans. RBI only lays down credit policy. Commercial banks, private or public, fix interest rates on loans. Loans in case of which interest rate is already fixed, are not affected by any changes subsequently. Interest rates vary only in case of floating rate loans.
Imran asked, Dear Sir,Please tell us if Finance company like GE COUNTRYWIDE can take legal action for non payment of dues.
Y B Desai answers, Yes they can. Remember, any organisation can take action for defaulting as it amounts to breach of contract.
ad asked, Hi, I just want to knw that credit card is useful or it is just the way to increasing the budget
Y B Desai answers, It is useful no doubt but indiscriminate use of it can inflate your budget. You may be tempted to live beyond your means. Be careful! But credit card makes shopping convenient because you don't need to carry cash.
Y B Desai says, Dear all, it was a pleasure chatting. I enjoyed answering your questions. Take care, keep well! Bye for now.
Photographs: Uday Kuckian
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